The Effect Of Net Profit From Company Size On Profitability In Industrial Companies Listed On The Stock Exchange

Sulaiman; Hayatul Millah; Cici Widya Prasetyandari

doi:10.63922/ijebir.v5i04.4818

Sulaiman Sharia Financial Management Study Program, Zainul Hasan Genggong University
Hayatul Millah Sharia Financial Management Study Program, Zainul Hasan Genggong University
Cici Widya Prasetyandari Sharia Financial Management Study Program, Zainul Hasan Genggong University

DOI: https://doi.org/10.63922/ijebir.v5i04.4818

Keywords: net profit, company size, profitability, multiple linear regression, company performance

Abstract

This study aims to analyze the effect of net profit and company size on company profitability. Profitability is an important indicator in assessing company performance because it reflects the company's ability to generate profits from its operational activities. The research method used is a quantitative method with an associative approach. The data used are secondary data obtained from the financial statements of the companies that are the objects of research. Data analysis was carried out using multiple linear regression analysis with the help of a statistical program, and a t-test was conducted to determine the effect of each independent variable on profitability. The results of the study indicate that net profit does not have a significant effect on profitability with a significance value of 0.606 (> 0.05). Meanwhile, company size has a positive and significant effect on profitability with a significance value of 0.016 (< 0.05). These findings indicate that company size is a factor that plays a role in increasing profitability, while net profit has not been proven to have a significant effect on company profitability

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